Both our Prime Minister and Transport Minister have shown a keen interest in facilitating the setup of the company's manufacturing units in India. But the company is facing a major problem to deal with the heavy import duty that shall be levied at the border cross in lieu of the distinct category that the electric vehicles belong to and their respective taxation. There is a provision of Govt. incentives that are offered on the plug-in electric vehicles that are followed since 2010 and provides a subsidiary of Rs. one and a half lakhs on the electric and hybrid vehicles' purchase since 2014. But there is a heavy import duty that will increase the overall price of Model 3 and hence, make is less attractive in the eyes of the customers as the parallels belonging to the homegrown manufacturing will have lesser pricing as compare to Tesla. It is expected to price at Rs. 23 lakhs exclusive of the tax, but after the inclusion of the tax, its price might go up as high as Rs. 36 lakhs. This would make it the pretty expensive choice in its segment.
